Home sales dropping because of higher interest rates

[BC Landlord]

So the last 70 years of a moderate rise in RE is the basis for it continuing to do so "just because"? It is not allowed to go down? That is quite a scam.....

No, it's because of consumers confidence, as evident from the stats. The sales are going up again.

[Patron]

*removed*

[ferri]

Home sales dropping because of higher interest rates

[Glacier]

A new street was build near me last year. Half the houses are built now. For Sale signs were up for months, but suddenly almost all lots have sold in the past 2 weeks. 15 lots for sale, and 14 have sold signs on them as of two days ago. Market is picking up... is that because of the Spring or is it because the population is rocketing up with few houses to choose from, I don't know.

[BC Landlord]

A new street was build near me last year. Half the houses are built now. For Sale signs were up for months, but suddenly almost all lots have sold in the past 2 weeks. 15 lots for sale, and 14 have sold signs on them as of two days ago. Market is picking up... is that because of the Spring or is it because the population is rocketing up with few houses to choose from, I don't know.

There is not much money in flipping lots. But once you build something (anything) on it, that's a different story. The market is already picking up speed, for sure. I would say, 2-3 months from now, we are looking at positive year-to-year trends again. Interest rates won't stop it.

[DoDo1975]

*removed*

[Mazdatruck]

A new street was build near me last year. Half the houses are built now. For Sale signs were up for months, but suddenly almost all lots have sold in the past 2 weeks. 15 lots for sale, and 14 have sold signs on them as of two days ago. Market is picking up... is that because of the Spring or is it because the population is rocketing up with few houses to choose from, I don't know.

Most houses (60-70%) in Canadian cities are owned outright are were bought for pennies on the dollar. There is little motivation to sell and the banks/lenders are playing amort games to prevent large scale defaults (30-90 year amortizations) because everyone is in on the ponzi scheme and nobody wants things to start going south.

Listings are at all time low and as mentioned we are letting in one million immigrants a year.

Canada is going to become a 3rd world country in a few years.

Grab what you can people.

This is what is happening right now. Zero inventory and the writing on the wall.

[BC Landlord]

This is what is happening right now. Zero inventory and the writing on the wall.

Hmmm, ... Inventory is steadily going up, at least in Kelowna. Here are SFH inventory stats for Kelowna:

Mar 2021, 411
Mar 2022, 473
Mar 2023, 875

Sales are also going up lately. In general, the market is looking good, as ever.

[DoDo1975]

So the last 70 years of a moderate rise in RE is the basis for it continuing to do so "just because"? It is not allowed to go down? That is quite a scam.....

No, it's because of consumers confidence, as evident from the stats. The sales are going up again.

You are right, it is consumer confidence; also called hubris.

The sales are going up (slightly) because there is some pent up demand. But its likely a dead cat bounce, common in any market that got way past any sane valuation and is on a downhill slide. Corrections take years to play out, not months.

They duped almost the entire country into believing that selling the same asset back and forth for every increasing amounts of borrowed money somehow meant we were prosperous. These financial illiterates are indeed confident and if they can find someone to lend to them they will buy.

But confidence and hubris are not market fundamentals. In the absence of fundamentals they signal irrational exuberance, also known as a bubble.

Interest rates are still low historically, affordability is significantly worse than it has ever been before. Incomes are not keeping up with other costs. Those are fundamentals.

And specuvestors are betting the farm that families making $60k a year after taxes are going to be able to pay them $60k a year in rent.

Sounds like an investor alert.

[BC Landlord]

Interior RE stats are out ...

April Stats.jpg

https://www.interiorrealtors.ca/files/A ... ELEASE.pdf

Kelowna's SFH benchmark up 5% from last month, and -8.8% year-over-year. Sales and prices are picking up speed. It only goes to show, how wrong were the resident doomsayers here.

[BC Landlord]

The sales are going up (slightly) because there is some pent up demand. But its likely a dead cat bounce, common in any market that got way past any sane valuation and is on a downhill slide. Corrections take years to play out, not months.

Sounds to me like the first stage of grief - Denial!

[Even Steven]

Sales are down and prices are down YoY.

Not sure where you saw good news.

MoM increase in sales ain't that special.

[DoDo1975]

Interior RE stats are out ...


April Stats.jpg

https://www.interiorrealtors.ca/files/A ... ELEASE.pdf

Kelowna's SFH benchmark up 5% from last month, and -8.8% year-over-year. Sales and prices are picking up speed. It only goes to show, how wrong were the resident doomsayers here.

It is comical how the same people who were absolutely adamant that month over month stats meant absolutely nothing 6 months ago think its the cats *bleep* now and are calling a bottom.

2nd inning of a 9 inning game.

The doomsayers are those who can cheer lead, hope and pray for increasing prices when a significant number of working families already have to eat KD every day just to put a roof over their heads.

[DoDo1975]

The sales are going up (slightly) because there is some pent up demand. But its likely a dead cat bounce, common in any market that got way past any sane valuation and is on a downhill slide. Corrections take years to play out, not months.

Sounds to me like the first stage of grief - Denial!

Doesn't sound like that at all. Sounds more like rational thought.

I don''t know why I would have any grief. I bought my home a long time ago and am not planning on buying another anytime soon. Increasing prices only increase my equity and I am locked into a low rate until my mortgage is done.

My opinions are based on fundamentals, math and historical analysis, not on unicorn farts or whatever makes my balance sheet increase.

[Glacier]

Most of Canada has a shrinking population...

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